93-8080r37
CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 8080
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $2, 790, 000 GENERAL OBLIGATION
IMPROVEMENT REFUNDING BONDS, SERIES 1994B
BE IT RESOLVED By the City Council of the City of Richfield, Hennepin
County, Minnesota (City) as follows
1. It is hereby determined that:
(a) the City is authorized by the provisions of Minnesota Statutes,
Chapter 475 (Act} and Section 475.67, Subdivision 13 of the Aet to issue and
sell its general obligation bonds to refund outstanding bonds when determined
by the City Council to be necessary and desirable;
(b) it is necessary and desirable that the City issue $2,790,000
General Obligation Improvement Refunding Bonds, Series 1994B (Bonds) to
refund in advance of maturity and at their redemption date, certain
outstanding general obligations of the City;
(c} the outstanding bonds to be refunded (Refunded Bonds) consist
of the $4,555,000 General Obligation Improvement Bonds, Series 1988, dated
October 1, 1988, of which $2, 720, 000 in principal amount is callable on
February 1, 199?.
2. To provide moneys to refund in advance of maturity the Refunded
Bonds, the City will therefor issue and sell Bonds in the amount of $2, 755,125. In
order to provide in part the additional interest required to market the Bonds at this
time, additional Bonds will be issued in the amount of $34, 875. The excess of the
purchase price of the Bonds over the sum of $2, 755,125 will be credited to the debt
service fund for the Bonds for the purpose of paying interest first coming due on
such additional Bonds. The Bonds be issued, sold and delivered in accordance with
the terms and conditions of the following Official Terms of Proposal:
Resolution No. 8080
TERMS OF PROPOSAL
~2,790,000* General Obligation Improvement Refunding Bonds, Series 19948
(the "Series 1994.8 Bonds")
City of Richfield
Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of the Series 19948 Bonds will be
received until 11:00, a.m., C.T. on ,Monday, January 24, 1994, in the orfices or Publicorp, Inc., St2 Crown
Roller Mill, 105 Firth Avenue South, ~~tinneapolis, rVtinnesota, 53401, (612)341-3646 at which time the
proposals. will be opened and tabulated ror consideration by the City Council at a meeting at ':00 p.m. on
the same day. The series 19948 Bonds are orrered on the rollowing terms.
Purpose and Security
The Series 19946 Bonds will be general obligations or the City, for which its rull raith, credit anc
taxing powers are pledged together with special assessments rrom benefitted properties. The purpose or the
Serves 19946 Bonds is to provide runds ror the refunding or that portion or the City's 54,»).000 General
Obligation Improvement Refunding Bonds or 1988 dated October 1, 1988, maturing on ane aster Februar,.~
1, 1998, authorized and issued pursuant to ,Minnesota Statutes, Chapter 475.
Date and Maturities
The Series 19946 Bonds will be issued in sully registered corm, will be dated February 1, 1994, will
be in denominations of integral multiples or 55,000 each and will mature on February 1, in the years and
amounts as follows:
Series 19946 Bonds=
Oate Amount Date Amount
1998 5520,000 2002 5580,000
1999 53-10,000 2003 520,000
2000 55.13,000 ?004 520,000
2001 5 ~ 6 x.000
Optional Redemption
The City may elect on February 1, 2003 or on any date therearter to redeem and prepay bonds or the
Series 19946 Bonds maturing on or alter February 1, 2004 at a price or par plus accrued interest to date c;
redemption. Prepayment may be in whole or in part and will be in inverse order or matur,t~es and b~ ~:'
within maturities.
Tfie Ciry reserves tfie rigfit, after proposals are opened and prior to award, to increase or reduce the total princ~eai
amount of the Series 19946 Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed
580,000 and will be made in multiples of 5.000 in any of the maturities. In the event the total principal amount or the
Series ~ 9948 Bonds is increased or reduced. any premium orrered or any discount taken and the purchase price will 5e
increased or reduced by a percentage equal to the percentage by which the total principal amount or the Series 199=6
Bonds is increased or decreased.
Resolution No. 8080
.Interest
Interest on the Series 19946 Bonds will be payable on August 1, 1994, and semiannually thereafter
on each February 1 and August 1. Bonds maturing on the same date must bear interest from date or issue until
paid at a single, uniform race, not exceeding the rate specified for bonds or any subsequent maturity. Each
rate must be in an integral multiple of 1iZrJ or. 1/8 of 1 °b. .
Registrar
The City will name the Registrar ~.~:nich will be subject to applicable SEC regulations. Principal •.vill
be payable at the principal orrice or the Ree:s;rar and interest will be payable by check or dram of the Registrar
mailed to the registered holder of a bone. The City will pay the reasonable and customary charges for the
services of the Registrar.
CUSIP '~1u_mbers
The City will assume no obligation for the assignment or printing_of CUSIP numbers on the Series
19946 Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be
assigned and printed at the expense of the purchaser, if the purchaser waives any extension of the time of
delivery caused thereby. ,
Delivery
Within 40 days after sale the C;ry will furnish and deliver to the office of the purchaser or, at its option,
will deposit with a bank in the United States selected by it and approved by the Ciry as its agent to permit
examination by and to deliver to the purchaser, the printed and executed bonds, the unqualified opinion
thereon of bond counsel, and a certificate stating that no litigation in any manner questioning their validity
is then threatened or pending. The charge of the delivery agent must be paid by the purchaser but all ocher
costs will be paid by the Ciry. The purchase price must be paid upon delivery of the Series 19946 Bonds .n
funds available for expenditure by the Ciry on the day of payment.
Leeal ODiniOn
An unqualified legal opinion on the Series 19946 Bonds will be furnished by Holmes & Graven.
Chartered, h1inneapolis, fvtinnesota. The legal opinion. will be printed on the ponds at the request o. :~e
purchaser. The legal opinion will state generally that the Series 19946 Bonds are valid and binding ge^eral
obligations of the City, that the City is reouired by law to levy taxes for the principal and interest there~~r, as
the same become due without limit as to rate or amount, and that the interest on the Series 19946 Bonds ~.vil)
not be subject to federal and state income taxes.
Official Statement
The City has authorized the preparation of an Official Statement containing pern^e^t .n~orr-_: ~~^
relative to the Series 19946 Bonds, and said Official Statement will serve as a nearly-final Official State~-~-,t
as required by Rule 1 Sc2-12 of the Secunt,es and Exchange Commission. The Official Statement. when '~~:^~~
supplemented by an addendum or addenda specifying the interest rates of the Series 199-16 Bonds, toget^er
with any other information required by law, shall constitute a Final Official Statement of the Ciry with res:;ect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Series 19946 Bonds to any unden~ rater
or underwriting syndicate submitting an official Proposal Form therefor, the City agrees that, no more than
seven business. days after the date of such award, it shall provide without cost to the, senor mana~+ng
underwriter of the syndicate to which the Series 19946 Bonds are awarded 25 copies of the Official Statement
and the addenda described above. The Ciry designates the senior managing underwriter of the syndicate to
which the Series 19946 Bonds are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Proposal
Resolution No. 8080
Form with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such
designation and (ii) it shall enter into a contractual. relationship with aJl Participating Underwriters of the Series
19946 Bonds for purposes or assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
Tvoe of Proposal -Amount
Sealed proposals must be mailed or delivered to the undersigned and must be received prior to the
time specified for the opening of proposals. The proposal authorizing the lowest true interest cost will be
deemed the most favorable. ~~o oral proposal and no proposal of less than g2,J»,125 for principal plus
accrued interest on all of the bonds will be considered. The City reserves the right to reject any and ail
proposals and to waive an informality in a proposal. A proposal must be unconditional and must be
accompanied by a cashier's or certified check, bank dram, or Financial Surety Bond in the amount of 527,900
payable to the City of Richfield, to be retained. by the City as liquidated damages if the proposal is accepter
and the purchaser tails to comply therewith. If a Financial Surety Bond is used, it must be from an insurance
company licensed to issue such a bond in the State of Minnesota and preapproved by the City. Such bond
must be submitted to Publicorp, Inc. prior to the opening or the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. Ir the Series 199s6
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit
its Deposit to the City in the form of a certified or cashier's check or wire transfer as instructed by the City not
later than 3:00 p.m. central time on the next business day following the award. If such Deposit is not received
by that time, the Financial Surety Bond may be drawn by the Ciry to satisfy the Deposit requirement. The City
will deposit the check of the purchaser and deduct the amount of the check from the settlement amount at
the delivery of the Series 19946 Bonds. If a purchaser fails to comply with the Terms of Proposal, the amount
of the deposit will be retained by the City.
BY ORDER OF THE CITY COUtiCIL
/s/ Thomas Ferber
City C?erk
City of Richfield
Dated: December 13, 1993.
Resolution No. 8080
3. Publicorp, Inc. is authorized and directed to negotiate the Bonds in
accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00
p.m. on Monday, January 24, 1994, to consider proposals on the Bonds and take any
other appropriate action with respect to the Bonds .
Adopted by the City Council of the City of Richfield, Minnesota., on the 13th
day of December, 1993.
Mayor ar in irsc
Attest
City Clerk Thomas P. Ferber